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HomeMy Public PortalAbout1994_11_21SPECIAL MEETING MINUTES OF NOVEMBER 21, 1994 A special meeting of the Leesburg Town Council was held on Monday, November 21, 1994, at 4:30 p.m., in the Council Chambers, 25 West Market Street, Leesburg, Virginia. Notice having been delivered to all members of the Leesburg Town Council prior thereto. The purpose of the meeting was to discuss the Water and Sewer Rate Study. The meeting was called to order by Mayor Clem. Councilmembers present (}eorge F. Atwell (absent) J. Frank Buttery, Jr. Jewell M. Emswiller Joseph R. Trocino Kristen C. Umstattd (absent) William F. Webb Mayor James E. Clem Staff members present Steven C. Brown, Town Manager Randolph W. Shoemaker, Director of Utilities Paul E. York, Director of Finance Also present were representatives of O'Brien and Gere Engineers. Mr. Brown stated the town awarded a contract to O'Brien and Gere Engineers to study the town's water and sewer billing method, the amount of money collected. The last time such a study was prepared was in 1990 before the bond issue to expand the town's Water Pollution Control Facility (WPCF). The expansion of the WPCF was a $20 million project. The rate study at that time was to contemplate the expansion. The results of the rate study were that the town was to have several rate increases over the course of the next few years. The town has been successful in avoiding some of those increases. The town's utility fund stands alone and faces the financial pressures that come from being a relatively small system, $,000 - 6,000 customers, however, must still meet all the regulatory requirements as other large utility systems must do. Mr. York introduced Mr. George Rest and Myron Olsteen of O'Brien and Gere Engineers. Mr. Rest stated that the purpose of this meeting is to get the Council's feelings and experiences with water and sewer rates and how O'Brien and (}ere should proceed. Mr. Rest described the process to be taken in preparing the rate study. Mr. Webb asked what can be done to reduce the cost to the town's water and sewer customers or to not increase the rates? Mr. Rest stated a lot of cost reductions involve sound management, conveying good economic information through the rate structure to the town's users. Mr. Webb asked if a study would be prepared to determine what the cost should be for new customers - availability fees? Mr. Rest stated cost of capacity will be studied which is what the availability fee is paying for. This calculation will be reviewed to make sure it is appropriate. Another boundary in setting rates is legal considerations - to make sure the availability fee meets legal tests. A rate study tries to determine how to meet the given revenue requirement. Mayor Clem pointed out that the water and sewer bills are astronomical in a new development of the town which is one of the reasons that have prompted this rate study. It is true that some of the residents have been over watering their lawns, however, many leaks have been found in this area. We want to be sure we have a rate study that is fair and equitable for our community. Mr. Rest stated as far as the sewer rate structure, definite alternatives will be provided. It should answer a fair number of complaints, however, no system is 100 percent perfect. It looks like a winter quarter type of billing for sewer would work out very well. It is important to remember that the same revenue requirements continue to be met. Mayor Clem referred to the water and sewer account deposit stating the Council is considering refunding this deposit to the customer once they have established a good credit standing. Mr. Rest stated he is familiar with the deposit refund policy and would look into the impact of different approaches. Mr. trocino stated the town has had a long standing policy of allowing new growth to pay for itself. We need to find a new way to help new growth pay for itself. Mr. Webb stated the town does not have its own field inspectors. County. This Council has discussed hiring its own inspectors. Mr. Rest stated he would provide alternatives. They are furnished by Loudoun Mr. Trocino emphasized restaurants are the hardest hit. Mayor Clem suggested the possibility of spreading out the fees for a new business over a one or two year period. Mr. Trocino asked that comparisons be made with neighboring jurisdictions. Ms. Emswiller asked if there is a mechanism available where existing businesses would not have to pay as much as a new business or perhaps the fee could be spread out over a period of time. Ms. Emswiller asked how other jurisdictions around the United States have handled these problems? Mr. Rest stated the law regarding availability fees has been well tested around the United States. Some areas that have very high fees also have partial payment methods or have the option of including it in the rates. Mr. Buttery asked if the study will look at the areas of amount of water usage used by apartment buildings or other large users and whether or not the owners receive a discounted fee? Mr. Brown explained that the apartments are metered and the owner pays for the amount of water used. There is no discount. Mr. Rest stated he will be looking at the different types of housing in the Town of Leesburg to see if a difference in usages can be identified. Typically, a dwelling unit in an apartment will use less water than a detached single family dwelling. Multi-family dwellings should have lower bills as a result of the difference in the patterns of usage. Every person that moves into Leesburg carries with them certain demands on the system and has to pay for their fair share in order to be fair to everyone. The meeting was adjourned. Clerk of Council ames E. Clem, Mayor own of Leesburg CO 11/21/94 spec